4-Star Stocks Poised to Pop: Cree

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, LED light maker Cree (NAS: CREE) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Cree's business and see what CAPS investors are saying about the stock right now.

Cree facts

Headquarters (Founded)

Durham, N.C. (1987)

Market Cap

$3.2 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$1.0 billion

Management

CEO Charles Swoboda (since 2001)CFO John Kurtzweil (since 2006)

Return on Equity (Average, Past 3 Years)

5.8%

Cash/Debt

$687.3 million / $0

Competitors

NichiaOSRAM SYLVANIAToyoda Gosei

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 1,207 members who have rated Cree believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, geomedf, highlighted the strong tailwinds working in Cree's favor:

Smartphones and peripheral devices growth projected to exceed 6 devices/person in the world by end of decade, and 2012 will be a banner year as Apple roles out IPhone 5. Good ROI, P/E ratio, etc even at this price point, and breakout pattern on charts well justified.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Cree may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.